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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?


To: Herm who wrote (7571)6/9/1998 7:35:00 PM
From: Caroline  Read Replies (1) | Respond to of 14162
 
Good going. I'll let you know when I've had a chance to take a good look at it.




To: Herm who wrote (7571)6/9/1998 7:55:00 PM
From: Caroline  Read Replies (2) | Respond to of 14162
 
Sym Exp Lcall st Shares Ask Outlay Scall st Shares Bid Intake Com*4
IFMX Jan-99 VIFAA 5 500 3 3/8 1687.50 VIFAU 7.50 1000 1 11/16 1687.50 122.00 -122

Looks like a wash, I need help seeing the upside.

Underlier: IFMX

LONG:
Exp: Jan 99
Long call: $5
Contracts: 5
Ask: 3 3/8
Outlay: 1687.50

SHORT:
Exp: Jan 99
Short call: 7.50
Contracts: 10
Bid: 1 11/16
Intake: 1687.50 (what a coincidence!)

Commissions * 4: 30.50*4=122.00

So the whole thing is a wash, minus commissions
(note I'm including the close-position commissions as well.

Now, what's the risk-reward?

Regards



To: Herm who wrote (7571)6/10/1998 1:34:00 PM
From: JoAnn McCracken  Read Replies (1) | Respond to of 14162
 
Herm,

Please post again the site where I can look up a stocks RSI.

Thanks,

JoAnn



To: Herm who wrote (7571)6/18/1998 12:53:00 PM
From: KB  Read Replies (1) | Respond to of 14162
 
Herm,

I'm still having brain lock with covered LEAPS. I have talked to my broker (E-Trade) and they told me I cannot sell CC's against LEAPS - need to be long in the stock. So, am I not understanding the concept or is it E-Trade? Or are there certain brokers who will not allow this type of CC? Thanks for your help!

KB